Be Careful When Establishing
A Plan for IRA Withdrawals

Need to tap your nest egg early? Make sure you set up a withdrawal plan that takes into account the turmoil in the markets.

Normally, withdrawals from an individual retirement account or similar savings plan made before age 59&frac12; are hit with a 10% penalty, above and beyond any income taxes. The Internal Revenue Service, though, offers a way to avoid that fine, if you're willing to follow some strict guidelines. Section 72(t) in the federal tax code permits "substantially equal" withdrawals before age...